AUS: Milk output fall leads Murray Goulburn to cut jobs

By Michelle Russell | 8 March 2012

Australian dairy giant Murray Goulburn has announced a raft of job cuts to its Victoria operations in a bid to cut costs.

Murray Goulbourn said it is cutting 64 positions from its Rochester plant in Northern Victoria.

The company said the cuts followed a "detailed review" of its operations amid a "significant reduction" in local milk production in northern Victoria and southern Riverina in recent years

The company said it has advised staff, suppliers and shareholders that the milk powder drying operation at its Rochester facility will be closed and placed into a "care and maintenance" programme until higher milk production levels return to the region. The changes are expected to be implemented by 30 April.

"Although there are encouraging signs of a recovery in milk production in the region, unfortunately it will not be sufficient to justify the continued full operation of the Rochester site at this time," said Murray Goulburn managing director Gary Helou.

"It is in the interest of our suppliers, shareholders, employees, communities, customers and consumers that we ensure that MG remains a strong business into the future."

Sectors: Dairy

Companies: Murray Goulburn

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